The FCA is releasing a full report into PCP deals at the end of the month

However, its initial findings published in March this year stated that the contracts are "generally transparent" with "clear and consistent" terms.

Hill said: “The claims industry that grew up around the PPI mis-selling scandal was never simply going to just fade away.

“These firms have now firmly set their sights on PCP customers as the next big cash cow.

"The hope among claims agents is that the FCA’s report next month [sic] kicks up enough dirt on poor selling practices among car dealers that ambulance-chasers can then set references - or even precedents - in court to legitimise their claims.

"We’re already seeing these vultures getting ahead of the game and hosting pages on their sites encouraging customers to come forward if they think they have fallen foul of mis-selling.

“Unfortunately, that’s to the detriment of customers who will end up parting with millions as these firms look to take a cut of the compensation payouts - whereas anything awarded by the Financial Ombudsman Service goes entirely to the customer.

“It’s important to note that, while there are certainly plenty of examples of misrepresenting PCP deals, the product itself is a solid route to car ownership.

"There’s a risk that by talking down the car finance market as a whole that consumers revert to financing vehicles outright from their own savings.

MORE FROM MOTORS

BOX-OFFICE FLOP

Driver caught watching film while on the motorway - as cops spy from buses

SAFETY SLIP?

All the times you can't be fined for not wearing your seat belt

EASY SAVER

More than a million Brits overpay for driving licence - apply online instead

SHOP AROUND

How letting your car insurance policy auto-renew will always cost you more

KNOW all

Cops crack down on uninsured drivers - and you might not know yours is invalid

Exclusive

FUMING!

London diesel drivers will have to buy new car or pay thousands in pollution tax

"This could ultimately stymie growth in the new car market as consumers steer towards cars - typically second-hand - they can buy from digging into their own savings.

“It’s vital that the differentiation between the product itself and the possibility of mis-selling is made clearly.”

A spokesperson from The Law Society told Sun Motors: "People should be cautious when seeking legal advice.

"Anyone who needs legal advice should ensure they speak to a regulated solicitor.

"Solicitors are a highly regulated profession with strict rules around professional conduct.

"Others offering advice, including claims management companies, may not be regulated or offer any protections to consumers."